Carnival Corp. reported a strong Wave season performance in its Q1 earnings call on Wednesday, noting record revenue and booking volume along with a 30% year-over-year increase in new cruisers.
Although the company had limited inventory available for the remainder of 2024, Carnival Corp. said booking volume hit an all-time high with customers buying cruises departing in 2025 and 2026. That strong demand has driven cruise prices higher than they were a year earlier, said CEO Josh Weinstein.
"We just experienced first-quarter booking activity that really knocked the cover off the ball, which is really gratifying to see," Weinstein said.
The company's Q1 revenue reached $5.4 billion, up from $4.4 billion a year earlier. The company also set a record of $7 billion for total customer deposits in Q1 at $7 billion, up from $1.3 billion in Q1 2023.
However, Carnival Corp. reported a net loss of $214 million, which was better than the company expected and a nearly $500 million improvement from a year earlier.
Occupancy for the quarter was 102%, up from 91%.
"Our record booked position and activity did not just happen, and it is not the result of pent-up demand from repeat guests built up during the pause, which is now years in the rearview mirror," Weinstein said. He attributed the company's successful quarter to broad-based demand for cruise travel across all of its source markets and capturing more new guests than ever.
Two more ships for Carnival Cruise Line
Noting that the company plans to prioritize investment in its highest-performing brands, Weinstein noted the company ordered its first new ships in five years. Two Excel-class ships will be built for Carnival Cruise Line by German shipbuilder Meyer Werft, one to begin sailing in 2027 and the other in 2028.
There could be another ship ordered for 2028 for one of the company's nine brands, but Weinstein said he wouldn't "necessarily bank on that."
"We are working on more things that are going to be geared towards our highest-returning brands as we've been talking about, and when there's something to talk about, we'll certainly share it," he said.
Fallout from Baltimore bridge collapse
The earnings call with investors was held a day after the Francis Scott Key Bridge in Baltimore was destroyed after a shipping vessel crashed into one of bridge's pilings. The result has closed off access to the Maryland Cruise Terminal indefinitely, prompting Carnival Cruise Line to shift the Carnival Legend's sailings from Baltimore and to Norfolk, Va.
Because of the deployment change, Carnival expects to take a $10 million hit on adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and on adjusted net income for the full year.